Web-based e-commerce platform provider Shopify Inc. posted strong sales and gross merchandise volume growth in 2016.
Shopify, which works with manufacturers, distributors and retailers, said this week that its fourth quarter sales totaled $130.4 million, up 85.8% from $70.2 million a year earlier. Gross merchandise volume (GMV) or the value of goods sold via its clients increased 96.4% to reach $5.5 billion for the quarter ended Dec. 31, compared with $2.8 billion a year earlier, Canada-based Shopify said.
Shopify’s platform launched in 2006 and Shopify went public in 2015. Four companies ranked in the 2017 B2B E-Commerce 300 use the vendor’s e-commerce platform: Pens N More (No. 244), Spikeball (No. 257), Jenni Bick Bookbinding (No. 276) and The Herschel Supply Co. (No. 292).
For all of 2016, Shopify grew total revenue 89.7% to $389.3 million, compared with $205.2 million in 2015. GMV for 2016 totaled $15.4 billion, an increase of 99% over $7.7 billion in 2015.
Shopify also announced new pricing for Shopify Plus, which the company launched in 2014 as a cloud-based e-commerce platform designed for larger companies. The vendor will charge merchants with annual online revenue of up to $10 million $2,000 a month for Shopify Plus, while merchants with annual sales greater than $10 million pay fees based on their GMV.
Shopify in December launched an integration with Amazon.com Inc. that enables companies running their shops on Shopify to also list their products on Amazon’s marketplace. Only merchants listing products for sale in U.S. currency can use the service at this time. Shopify also last year enabled clients to sell via Facebook Messenger.
For the fourth quarter ended Dec. 31, Shopify also reports:
- Subscription revenue for its software of $56.4 million, up 63.0% from $34.6 million a year earlier.
- Revenue from what Shopify calls Merchant Solutions, which includes shipping and payment processing services for which it takes a cut of each sale, increased 107.9% to $74.0 million from $35.6 million, mainly driven by the growth of GMV, Shopify says.
- Net loss of $8.9 million compared with a loss of $6.3 million.
For the full year 2016, Shopify also reports:
- Subscription revenue grew 68.4% to $188.6 million from $112.0 million in 2015.
- Merchant Solutions revenue grew 115.1% to $200.7 million from $93.3 million.
- More than 133,000 net new sellers began selling on Shopify.
- Net loss of $35.4 million, compared with a loss of $18.8 million.
Read more details about Shopify’s 2016 earnings here.
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